March 2018

MARCH 2018

INSIDE: $1 Billion Boost to U of O Economic Outlook - $1.8 Trillion

Move Over Millennials Dredging Oregon Ports Evergreen Land Title

A Few Words from Greg: If construction projects and plans for construction are any indication of a recovering economy we must be in a very good position in southern Oregon. Streets, roads, and bridges seem to be undergoing repairs and upgrades everywhere we turn. The activity feels good.

Logic follows that incomes generated from street and highway repairs is stimulus for home construction and purchase and any number of consumer transactions at retail counters. You buy a car, and you are helping to employ the person who sold it to you. An exchange of goods and services results from the catalyst of a street construction project or building construction on a college campus.

The groundbreaking of the $1 billion Knight Science Campus at the University of Oregon has captured interest across the country and in many parts of the world. Its big. Its modern and it has the potential to make a difference around the world. Completion of the project in 2020 will bring with it employment of as many as 700 individuals, from custodians to world renown research scientists. Be ready for traffic congestion on Franklin Blvd for the next two years.

The increasing interest in CLT lumber and mass plywood is injecting a renewed interest in tall building construction in Japan, Canada, Europe and around the U.S. Our timber industry professionals may find themselves in a prolonged growth period as this technology advances. With it comes a stronger push for vocational education and a blue-collar workforce with skills and talent commensurate with new century demands.

I’ve heard from a list of economists and investment professionals who remain optimistic about the next year or year and a half, at least. They say that the fed should do very little in raising rates because it simply isn’t necessary as inflation is not an issue and wage growth is dictated by the limited supply and large demand for employees. The worlds 35 largest economies are all in a growth mode, the dollar remains strong keeping trade negotiations robust.

The key is to be careful of outrageous headlines and to make no sudden moves based on emotion. We are learning to make our own logical decisions rather than relying on talking heads and famous names. That should be a good thing.

On the 11th we move our clocks ahead. Can it be spring already?

Greg

Southern Oregon Business Journal

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A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

Contents Inside This Issue 4. Economic Outlook 6. Startup Dream 12. Smart Exit 14. Graduation Rates Improve 16. MegaByte

FEATURED ARTICLES

24. Marketing Principles

9. Strong Towns

26. OWN

18. Knight Science Campus

29. Dredging Oregon Ports 33. Seize the Day

31. Recovered Paper

34. Hypertensive Teens

41. City Commentary

35. Move Over Millennials 37. Good Vibrations

43. Fed Watch

39. Evergreen Land Title 46. Oregon Tech 48. Voltage, Oregon

COVER PHOTO

By Permission,

703 Divot Loop Sutherlin, Oregon 97479 www.southernoregonbusiness.com 541-315-6127 Southern Oregon Business Journal

Architects Rendition of the Phil & Penny Knight Campus for Accelerating Scientific Impact

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Commentary by Robert Whelan, ECONorthwest

$1.8 trillion is 180,000,000,000,000 dimes.

Piled together they would weigh as much as 100 Empire State Buildings! Now imagine you had to borrow those dimes, just as in the Depression Era song, “Brother, can you spare a dime?” Because we will have to and here is the story.

We are 107 months into the second longest economic expansion in a hundred years. Jobs are plentiful. Shortages prevail. It is times like this we should pay down our debts. Save our credit worthiness for when we really need it. So what did Congress do? They did the absolute opposite. They passed a tax cut at the same time we are running big budget deficits. The resolution to all this could be ugly–very ugly indeed. Tax cuts compound an already troubling situation.

Think of the money we have to borrow. Start with a deficit we inherited for the next year.1 That’s $700 billion. Add to that the tax cut Congress just passed.

We have to borrow another $280 billion to cover that. Then throw in the latest extras from defense spending and disaster relief to extra funding domestic programs and Obama Care. That brings us to $1.2 trillion in deficit spending. Now count the $600 billion in bonds that the Federal Reserve will not roll over.

All told, it means the federal government has to find investors willing to buy $1.8 trillion more Treasury bonds. And that is just in the next year. It is equal to 9 percent of the entire economy. So what will happen?

Well, anything can happen but one way, and I believe the most likely way, it will resolve itself is by interest rates rising. To convince people to buy those bonds, the government will have to offer more attractive interest rates.

It started already. Treasury bonds that mature in 10 years paid 2.40 percent at the end of December.

You could have bought one then for $1,000. Interest Southern Oregon Business Journal

rates rose. A month later they were paying 2.72 percent. That may look like small potatoes, but that $1,000 bond you bought on New Years is now worth only $880. Bond investors got killed in January.

February the carnage continued. In just the first two days yields rose to 2.85 percent. Now your bond is worth only $840. It took a while, but stock markets finally responded. Stock prices fell, although nowhere near as much as bond prices.

Economists struggle getting people to understand really big numbers, so we like to find fun ways to explain them. So it is with the upcoming $1.2 trillion dollars our government will have to borrow next year.

So now that you lost 20 percent of your money on that bond, would you like to buy another? We need to sell $1.8 trillion of them. We need all those dimes.

What interest rate would they have to offer you to get another $1,000 from you? I am betting it is a heck of a lot more than the current rate. Maybe they will have to offer 3 percent, 4 percent, or 5 percent?

So think about this. If they offer 5 percent bonds, will people trade in stocks to pay for the bonds? Some will. After all, stocks are yielding only 1.8 percent.

Why not, if you are a pension fund for example, lock in 5 percent yield knowing you are guaranteed to get your entire investment back in 10 years?

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There in lies the ugly situation ahead.

Rates look like they are headed higher. That is bad for the stock market. It is bad for the housing market. That probably is bad for the exchange rate, which affects things you may not think of … like tourism, exports, and inflation. None of this would be good for the Northwest.

Can the situation resolve itself without causing big rate increases? Sure it can, but it does not look good. I’m nervous about it and I lived through 9 recessions. Be cautious.

If Congress does nothing different, the government would have to sell $1.8 trillion in bonds. Somebody has to buy that debt. The question is; how much would they want? Brother, if I offered you 5 percent, would you spare 180,000,000,000,000 dimes?

1. The federal fiscal year starts on October 1, 2018 and ends September 30, 2019.

2. For the last 10 years the Federal Reserve Bank has been buying government bonds with money they basically printed as a way to get cash into the economy. Now that the economy has recovered, they stopped buying and are taking cash out of circulation. So as those bonds mature, the federal government has to find investors to buy new bonds.

Southern Oregon Business Journal

Robert Whelan

ECONorthwest is the Pacific Northwest’s largest and most respected economic consulting firm. We provide independent, insightful, and relevant analyses that strengthen policy and investment decisions.

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A CORRECTION? This is more structural than anything else - meaning it's driven as much (or more) by computers than fundamentals. The ironic thing is that inflation is a sign the economy is improving. I'm not entirely sure the market has this thing right. I think we're having an overreaction from trading that's been exacerbated by trading algo's and computers fighting other computers. Once the dust settles there's probably some huge bargains to collect. The fact the FED may have to raise rates doesn't mean things are bad -- it's the opposite. Sure, at some point a recession will come. But this seems way too soon. We just don't have the same conditions that brought about a 2008. And my suspicion is that we get to about a 10-to-12% correction and the buyers will all start showing up.

David Littlejohn, CFPÂŽ

Principal, Littlejohn Financial Services

main: (541) 375-0898 mobile: (541) 580-2738 fax: (888) 489-7557 Skype: davelittlejohn web: www.littlejohnfs.com

Southern Oregon Business Journal

mail: 2435 NW Kline St. Suite 200 Roseburg, OR 97471

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3 LESSONS FOR BUILDING A GREAT COMMUNITY — FROM A VERY SMALL TOWN

BY AUSTIN MAITLAND After decades of suburbanization, many Americans are left wondering, "Where did our towns go?” Main Street is a hollow shell of its past and the mall that killed it is one anchor store away from irrelevance.

Sidewalks sit empty while more and more cars clog the roads. In need of solutions, residents and planners often look to the vibrant cities of Europe or expensive urban areas of the U.S. However, it’s easy to forget that more practical examples of great communities exist far away from San Francisco or Copenhagen. This brings us to Millbrook, New York.

Southern Oregon Business Journal

Millbrook

is located 15 miles northeast of Poughkeepsie in upstate New York. As of 2016, the population stood at 1,413. It’s a small village but offers some big ideas when it comes to building a great community. Here are three important, scalable lessons offered by the small community:

1. DITCH THE STRIP

Millbrook

has avoided such development and its main street, Franklin Avenue, still serves as the 9

primary commercial corridor.

Without pressure from peripheral strip development, Millbrook’s village center thrives. Franklin Avenue is lined with an impressive variety of shops, cafes and civic buildings. This integration of commercial activity with the surrounding village neighborhoods invites residents and visitors to enjoy the town on

foot rather than by car. Despite the lack of any substantial off-street parking, the sidewalks are alive and well with full storefronts and a steady stream of foot traffic. Unlike most commercial corridors, Millbrook embraces the kind of human-scale development often prohibited by local zoning, in spite of nearly ubiquitous demand.

41690306/millbrook4.png" alt="Diners enjoy one of many outdoor cafe seating areas lining Franklin Avenue." /

Diners enjoy one of many outdoor cafe seating areas lining Franklin Avenue.

A library without a parking lot might be considered crazy in most other towns.

But in Millbrook, it works. With no dedicated surface parking lot, the Millbrook Library activates the streets by encouraging access by foot: <img src="https://static1.squarespace.com/static/53dd6676e4b0fedfbc26ea91/ t/5a661dab0d9297ec37272ab6/1516641717313/" />

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2. EMBRACE EDUCATION Schools that once filled stately buildings in prominent locations near the center of town have transformed into sprawling, isolated campuses far from any meaningful civic life. Trees and berms heavily buffer the site from surrounding developments (if any exist) and parking lots generously pad the building on all sides. All of this ensures a complete lack of engagement with nearby streets, often necessitated by proximity to dangerous state highways. Schools have slowly transitioned from bustling anchors of neighborhood activity to just another curb-cut along the road.

Millbrook has taken a different approach. All of Millbrook’s four school buildings are located within a half mile (10-minute walk) of the center of town. For instance, Elm Drive Elementary School is surrounded by residences on all sides. The proximity of housing not only encourages children, parents and staff to walk to school; it adds eyes on the street, a welcome layer of security that does not exist at the educational fortresses pervading the suburbs. In addition, high schools located near the center of a community remove the need and temptation for newly licensed teenagers to drive to school, making streets safer for everyone. The treatment of schools as an integral community asset rather than a nuisance to be contained is an important step towards a stronger neighborhood.

Elm Drive Elementary School is located in the heart of the village. Its central location adds to the walkability of the neighborhood and reinforces a sense of community. The remaining schools are located a short walk from the village.

3. SUCCESS IS SCALABLE When it comes to building a vibrant community, Millbrook demonstrates that the number of people in any given town is of relatively little importance. In fact, many towns with dramatically higher populations than Millbrook come nowhere close to matching Millbrook’s level of street-level engagement and activity.

pattern of development. For decades, local governments of all sizes have used zoning to force land uses apart and consequently enshrine the private automobile as the sole mode of transportation between any two destinations. Millbrook proves there is a different way to approach development and that your town doesn’t need the density of London to support great neighborhoods, free from car-dependence.

With the proliferation of form-based codes and rejection of parking minimums gaining steam, it’s clear there is demand for change. Towns seeking to become economically resilient and differentiate themselves as more than another series of congested strip malls and subdivisions can look to Millbrook as a model.

While Millbrook highlights the importance of mixeduse zoning and engaging with community assets, it also serves as a powerful reminder that great communities come in all sizes. Every town has the ability to counter the tradition of suburban development and embrace a new era of building great communities.

The mission of Strong Towns is to support a model of development that allows America's cities, towns and neighborhoods to become financially strong and resilient.

For the United States to be a prosperous country, it must have strong cities, towns and neighborhoods. Enduring prosperity for our communities cannot be artificially created from the outside but must be built from within, incrementally over time.

The fundamental difference is not population but Southern Oregon Business Journal

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By John Anderson John Anderson is a longtime business consultant and coach who helps business owners evaluate their businesses, adjust their operating practices, build a strategic plan and make a Smart Exit™.

Create Your Smart Exit™ - You Can Make It Happen!

You get things done. You make things happen. You figure it out and solve problems every day and you’ve been amazing people for years. You’ve successfully operated a small business. You’ve helped many, many customers. You’ve managed employees, paid bills and taxes, and most of the time, had money left over.

Properly preparing and selling your business is just one more problem to solve. You know the drill.

Evaluate the situation. Determine the resources you need. Test trial solutions. Use specialized tools.

Surround yourself with expert knowledge and research to reduce errors and avoid disaster.

Yes, you’ve fixed up cars and maybe houses then sold them. There are differences. Selling a business - not just any business but your business - is different. This business, well, it’s like your favorite jeans. It’s like a pair of gloves or your skin itself.

Now to prepare it and sell it, well, what are you going to do?

Create a New Future You’ve got to create a new future, something better to move towards. This is why you must plan now.

Southern Oregon Business Journal

Don’t let it crash into the dirt because you’ve had an auto accident or heart attack and can’t finish the job yourself.

After being “the boss” for so long, identifying a person with potential like an employee or a tech looking for a job is seeing a diamond in the rough waiting to be cut and set in a ring. You’ve got that opportunity. In previous issues, we discussed the different potential buyers of your business. Yes, it takes time to develop a “new leader” and train them to become a manager, then a partner who buys you out over time. Your return on investment can make it very worthwhile.

There is a group of business owners working together every few weeks to discuss what’s working and what’s a struggle in achieving their Smart Exit.

There is group and private work to allow each business to craft its own strategy and timeframe to better prepare. You might be ready to sell now and wish to increase the value as you prepare to sell to have more net proceeds after the sale.

The “selling your business” phase of an entrepreneur’s career is quite different from the starting and administrating phases. When we start an enterprise, 12

we can do it part time. We can put the new company on hold and resume it later. We can start, fail, then start again until we get it right. Walt Disney and many successful entrepreneurs had several false starts. When we’re in the administrative phase we can keep business the same, grow slowly, cut back and adjust depending upon the economy, our employees and our abilities and resources. By comparison, when we “sell” there are new risks in addition to those you have already faced.

Business Sale Pitfalls There are many things that could go wrong in the sale of a business. Being aware of the pitfalls could save you time, money, and personal well-being.

You can tell too much or too little to prospects interested in buying your business. If you tell too much you might a) discourage them or b) create a competitor who takes the information you provided as research - learning your strengths and weaknesses, to open a business down the street.

You could tell too little and a) not inspire the shopper with what their potential could be, or b) they see too optimistic a picture, buy the business but cannot realize the sales and profit they believe you promised and take you to court to sue for a refund because of misinformation.

Other risks are them buying, taking over, and failing at it. They fire or run off your veteran techs who they promised to treat fairly. They botch up jobs from customers you worked years to win. You’re embarrassed with customers and community colleagues you’ve known for years who have bad experiences and heard the horror stories. For years, the “good” name of the business is one you were proud of and worked hard to keep untarnished.

Worse yet, you agree to carry a loan from the buyer.

The new owner depletes your inventory, breaks or takes your tools, ruins your reputation and you have a legal battle to regain control or you want to but there’s no one to find whom you can sue. Now you must salvage your company, rebuild the reputation to sell it again.

The Sweetheart Deal On the other hand, you could get a sweetheart offer from an experienced, sophisticated buyer. You accept the offer then go through 3+ months of due Southern Oregon Business Journal

diligence from the buyer’s accountants who take over your office. There’s a clause in their offer that if you can’t substantiate your income estimates for this year, their cash payment at closing will be substantially lower. They may offer you the chance to operate the business for a period of months and if you can produce the sales and profits you predicted then they’ll pay the full price. You’re now in a loselose situation. Take the much lower price or work for them to earn the full price. You accept working for them but it’s much different running the shop and reaching goals than when you made final decisions as the sole owner.

Or you get a good offer, all goes smoothly, but this is all new to you and you don’t do all your planning and sale work, because, hey it’s your first time. You forfeit 2/3 of the sale price in taxes and transaction fees.

It’s said that half of all business sales have a significant flaw, regardless of the size of the businesses sold, large and small, with attorneys and with just a buyer and seller. Business sales are tricky. Preparing and selling your business is like remodeling your kitchen, bath and bedroom while trying to live there and have a normal life.

Get expert help to assist you in preparing, planning, and researching. Doing this slowly and doing it right is better than fast and sloppy. It’s a real challenge to continue operating the business while growing it within your cash flow constraints and preparing, then executing, a successful sale. Get expert help to make a Smart Exit™!

By John E. Anderson, CEO of Be Cause Business Resources and Author of Smart Exit™ Steer Your Business to Success and Companion Workbook John is a business exit expert, consultant and coach who helps business owners evaluate their businesses, optimize their operating practices, build a strategic plan and make a Smart Exit™. He shares successful business exit strategies in this six-part Smart Exit™ series.

To schedule a complimentary consultation, contact John at info@becausebusiness.com or call 360-200-5840. • www.smart-exit.com

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Oregon graduation rate increases nearly 2 percentage points Thursday, January 25, 2018 http://www.osba.org/News-Center/Announcements/2018-01-25_GraduationRates.aspx

Oregon’s graduation rate improved nearly 2 percentage points for the 2016-17 school year, according to the Oregon Department of Education on Thursday.

The 2016-17 ODE graduation rate report showed that 76.7 percent of Oregon students earned a regular or modified high school diploma within four years. Oregon’s graduation rate, among the lowest in the nation, has been ticking up recently, and this is the largest year-over-year improvement since Southern Oregon Business Journal

ODE changed the way it calculated graduation rates for the 2013-14 school year.

“It shows we are working toward the right

things, but we are not there yet,” said OSBA Executive Director Jim Green. “Seeing the graduation rate increase is encouraging, but we need to do better for all our students across the state, particularly our students who have been traditionally underserved.”

Oregon had the third-worst state graduation rate for 2015-16, when the national average was 84.1 14

percent. The National Center for Education Statistics has not released data for 2016-17.

States calculate their graduation rates using different standards. Oregon’s requirements are more stringent than most, Oregon officials say. The graduation rate does not include students who earn GEDs or take more than four years to graduate.

Oregon’s 2016-17 data showed gains for every student group except Native Hawaiian/Pacific Islander, but most historically underserved groups still trail the state average. For the first time, the report includes the graduation rate for homeless students (50.7 percent).

Acting Deputy Superintendent of Public Instruction Colt Gill said Wednesday the graduation rate improvement shows a concerted statewide effort, and he praised OSBA’s leadership with graduationrate focused projects and programs.

“It says to me that school districts – from board members to teachers to school bus drivers to everybody – are focused on the graduation issue,” he said. “They’re using data to aim their resources in ways that make a difference for students.”

The Medford School District has improved its graduation rate from 65.2 percent in 2013-14 to 78.1 percent in the most recent year.

“We pushed ahead of the state average last year and have done a lot of strategic things to improve,” said Superintendent Brian Shumate. “We’re glad the state is moving, and we’re glad we are moving as well.”

Medford credits a mix of short-term strategies – such as analyzing credit acquisition and emphasizing attendance – and long-term strategies, including expanding personalized learning options, developing career pathways and offering more mental health supports.

Medford has set a graduation rate goal of 90 percent by 2020. To do that, Shumate said, Medford is shifting the way it structures high school to allow more personalized learning time.

“Our current high school structure across America is built for only about 80 percent of kids,” he said. He says schools need to reconsider how they think about seat time, credit requirements and teaching methods to tailor for individual student engagement needs.

New data about students from ODE and increased funding opportunities, such as Measure 98 grants, are key to continuing the progress, he said.

School district officials, while proud of their gains, expressed a commitment to doing even better for all students.

Newberg Public Schools increased its graduation rate 4.4 percentage points to 83.7 percent. The district saw strong gains in its historically underserved populations, particularly Latino students (80.2 percent graduation rate). The district attributed the increases to targeted programs and interventions.

“Through building an understanding of our patterns of achievement and success, we began to realize where we needed to put our energy,” Superintendent Kym LeBlanc-Esparza said in a news release.

Southern Oregon Business Journal

Jacob Arnold Communications and News Specialist jarnold@osba.org

Jake Arnold joined OSBA’s staff in January 2017 as communications and news specialist. He is responsible for reporting triumphs, challenges and stories of interest to OSBA members.

Before joining OSBA, Jake spent 15 years working as an editor and writer for The Oregonian, where he rose to copy desk chief and production leader.

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The Computer Fraud and Abuse Act of 1984 (CFAA) – Or, Why MegaByte Computer Services is Important Today The CFAA has its roots in the 80s when cybercrime was just beginning to enter into the nation’s conscience. Concern about computer crime was first formalized in the Comprehensive Crime Control Act of 1984, where Congress discussed a bill entitled “Counterfeit Access Device and Computer Fraud and Abuse Act of 1984.” (HR rep 98-894) This early rendition of the CFAA was mainly concerned with credit card fraud and the illegal use of computers in obtaining financial gain or classified information (id. at 12). Hackers are also specially

Sean Mackey, VP

mentioned within the report as a reason for legislation.

Congress recognized that there were no present laws to cover computer crime at the time (that time being 1984). It mentioned two cases of computer crime that had to be prosecuted under mail fraud (19 U.S.C. 1341) or wire fraud (18 U.S.C. 1343), and were only prosecuted under such because the defendants in both cases made calls across state lines.

Christine Mackey, CEO

Since 1994, MegaByte Computer Services has provided Southern Oregon with top quality computer hardware, repair services, and expert network integration.

Sean Mackey joined his parents in the early 1990’s and quickly found his career of choice. In 1995 the business was his with wife Christine joining him soon after.

Southern Oregon Business Journal

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http://www.megabyteinc.com/

The Y2K concern of the 90’s brought technology to the attention of the nation with concerns that a failure to include four digits in the dates of computer programs (95 instead of 1995) would cause complete failure in systems around the world with the changing of the Century. The scare that did not cause planes to fall from the sky, or hospitals to shut down at midnight 2000 was successful at bringing the computer industry and its importance to nearly everything we do to the nation.

Today there is no argument that experts in the computer industry are vital to the smooth operation of most things in our lives today.

Through Y2K, recessions, international cybercrime, hackers of every stripe, and warp-speed advancements in the industry, MegaByte has remained the one dependable source of quality and consistent service in the Roseburg area. Even when Sean was critically injured in an auto accident several years ago, their customers received the high level of service that is a trademark of Megabyte.

Even when clients come in with a discount store computer that isn’t working properly, Sean and his team will resolve issues that would not have existed if the equipment had been purchased from his store.

The discounted purchase added to the cost of emergency service of Megabyte soon becomes proof that special pricing at places that don’t also provide excellent service is no discount at all. A new loyal customer is born.

Involved in the community and as reliable as the sunrise, the Mackey’s are as loyal to their customers as their customers are to them.

It is a sound business relationship with no sign of changing.

Southern Oregon Business Journal

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The University of Oregon

The Phil and Penny Knight Campus for Accelerating Scientific Impact

BORA ARCHITECTS AND ENNEAD ARCHITECTS REVEAL DESIGNS FOR THE PHIL AND PENNY KNIGHT CAMPUS FOR ACCELERATING SCIENTIFIC IMPACT AT THE UNIVERSITY OF OREGON New York-based Ennead Architects and Portland -based Bora Architects have revealed the designs for the much-anticipated Phil and Penny Knight Campus for Accelerating Scientific Impact, which is poised to transform the University of Oregon with an ambitious new effort to rethink science education and innovation. The Knight Campus is made possible by a $500 million lead gift from Penny and Phil Knight, co-founder of Nike, who earned a business degree at the UO in 1959.

The $1 billion project is also supported with $50 million in state bonds. The ambitious effort aspires to dramatically shorten the timeline between discovery and societal impact through world-class research, training and entrepreneurSouthern Oregon Business Journal

ship in a nimble scientific enterprise. Groundbreaking is scheduled for February 2018 on the $225-million, 160,000-square-foot first phase designed by Bora | Ennead, with an anticipated opening date in early 2020. Design partner Todd Schliemann and Management partner Don Weinreich lead the Ennead team and John Oâ&#x20AC;&#x2122;Toole and Tom Bauer lead the Bora team.

The Bora | Ennead partnership is a strategic alliance of two firms, both of which are awardwinning designers of academic and research buildings. Experienced in innovative research environments, both firms believe in the power of human-centered architecture to invigorate 18

scientific communities in search of new discoveries and have a history of creating visionary and highperforming architecture in university environments, like those at University of Michigan, Stanford and the University of Texas at Austin. Ennead is responsible for the Knight Campus design, and Bora, as the Architect-of-Record, will be responsible for overall project management and execution.

“We set out to design a campus around the very interdisciplinary ideals that have helped drive the University of Oregon’s success,” said Todd Schliemann of Ennead, the lead designer for the project. “This design beautifully illustrates that

On each floor there are four research neighborhoods organized around a central courtyard. Double height research floors allow for a floating faculty office mezzanine, offering an opportunity for greater interdisciplinary exchange. Inviting spaces will encourage collaboration among researchers from Southern Oregon Business Journal

identity by not only reflecting the UO’s past, but by illuminating a future of inspiring science.”

“It’s rare for a design to mean as much to an entire community as it does to the people who use it every day,” said John O’Toole, of Bora, the architect overseeing the project.

“These Knight Campus designs represent so much more than a building. They symbolize the future of research, of a university and of a state.”

a wide variety of scientific fields. The building program is intended to be hyper-flexible so that research groups can shift focus depending on where discoveries lead, and will include innovation spaces, collaborative spaces, core labs, research labs and work areas.

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Situated between busy Franklin Boulevard and Eugene’s historic Millrace, this expansion creates strong ties with the existing campus through geometric alignment with the campus grid, while establishing a progressive aesthetic sensibility for the new precinct.

Central to the Knight Campus design is an enclosed pedestrian bridge across Franklin Boulevard, connecting the core campus to the new district, making an elegantly impactful announcement of the campus to those passing by.

An arched butterfly design, the bridge is a selfsupporting spanning element that is simple, light and symmetrical. It features two splayed arches springing from a common support point on each side of the boulevard and uses tension cables to support the bridge enclosure at its floor structure.

“With these designs, our ambitious vision for the Knight Campus is a step closer to becoming a reality,” said University of Oregon President Michael Schill. “We are creating a place that will incubate genius, curiosity and ideas, where researchers from a variety of disciplines will come together to forge lasting impact on the world.”

Southern Oregon Business Journal

About Bora Architects Bora is an award-winning architectural firm in Portland whose practice is driven by a deep commitment to involving their clients in the creative process. Passion for new solutions, sustainability and positive social impact has driven their practice from the beginning, but fundamental to their work is a deep commitment to involving clients in the creative process. Creating innovative learning environments for scientific disciplines is one of their specialties, and projects include the Science & Engineering Quad at Stanford University, a four-building, multi-disciplinary complex for the School of Engineering.

About Ennead Architects Ennead is an internationally-acclaimed studio with offices in New York City and Shanghai. At the core of Ennead’s values lies a deep and fundamental commitment to create architecture that serves humanity. The firm’s portfolio is diverse, ranging from complex laboratory, research and teaching facilities to performing arts centers and museums, and from large-scale infrastructure projects and campus plans to hotels and residential buildings.

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Robert Guldberg to take the helm of the Phil and Penny Knight Campus for Accelerating Scientific Impact next fall A mechanical engineer well-versed in medical research and entrepreneurship has been chosen to lead the Phil and Penny Knight Campus for Accelerating Scientific Impact at the University of Oregon.

Robert E. Guldberg, widely known in the field of regenerative medicine, will become executive director of the Knight Campus next September.

societal impact.”

Over the next decade, the Knight Campus will house more than 30 new principal researchers and their teams and will support an estimated 750 new jobs, representing an estimated $80 million in annual statewide economic gains.

“While Bob holds impeccable academic credentials, it is his ability to effect change and create meaningful impact that is really impressive,” said UO President Michael H. Schill. “Bob describes himself as an engineer who speaks many different ‘languages’ – engineering, biology, entrepreneurship and the like. This fluency is just what we need for the Knight Campus.”

Schill also praised Patrick Phillips, who is serving as acting executive director, for his leadership.

The Knight Campus, announced last fall, is a $1 billion effort to rethink research, science education and innovation. It is made possible by a $500 million lead gift from Penny and Phil Knight, who earned a business degree at the UO in 1959, and supported with $50 million in state bonds.

Guldberg has been at the Georgia Institute of Technology, also known as Georgia Tech, in Atlanta since 1996. He has headed the Parker H. Petit Institute for Bioengineering and Bioscience since 2009.

The Knight Campus goal to quickly turn discoveries into usable societal applications, he said, fits well into how he approaches science. “As I’ve advanced in my career, I have gravitated toward developing technologies that actually make their way into patients,” Guldberg said.

“There are a lot of institutions in the country that are innovating very, very well, but they are not getting their innovations out the door effectively,” he said. “It doesn’t really make sense to start things completely from scratch, but rather to build on areas of strength that can be turned into areas of national pre-eminence and then translated into Southern Oregon Business Journal

“I am immensely grateful to Patrick,” he said.

“Under Patrick’s extraordinary and selfless leadership, the Knight Campus has been transformed from an exciting concept to concrete reality. Patrick is a phenomenal leader who has created a stellar foundation for Bob and the Knight Campus team to build upon

“Bob Guldberg is a high-energy and visionary proven leader, team builder and consensus builder who is interested in results and good partnerships.

With his new position at the University of Oregon, I’m sure that Bob will be interested in partnering with OHSU in such areas as diagnostics, cell-mediated therapies and neurosciences, especially in work related to nerve and spinal cord injuries and regenerative medicine.”

—Dr. Kenton Gregory, director, Center for Regenerative Medicine, Oregon Health & Science University

Faculty members Jim Hutchison, a chemist and associate vice president for research, and biologist Karen Guillemin – both members of the Knight Campus advisory board – said they look forward to Guldberg’s arrival.

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“Bob will bring us a wealth of experience not just in research but in the translation of science into society,” Hutchison said. “As an engineer, he will bring a new way of thinking about how we do research and translate it.”

Guldberg’s presence, Guillemin said, will speed up planning and faculty recruitment.

“Bob will bring a lot of new expertise to campus,” she said. “He’s trained as an engineer but also, throughout his career, has been interested in molecular and cellular mechanisms, and that’s something that should really enrich the life sciences here.

We should benefit a lot from his energy and approaches.”

Gone are the days, Guldberg said, when researchers can work alone within a single discipline.

“Science is a team sport. It’s also a people business,” he said. “The challenges we face now in the world, in society and medicine are so complex that the old way is not possible anymore. If you take cancer, for example, it’s unlikely that just a biologist or just a clinician or just an engineer is going to solve it. We need to create teams to work together, and it turns out that funding agencies and companies that support research have figured that out, too.”

He taps his engineering knowledge in his own research, where he seeks to understand how body mechanics influence the healing process and how such information can be harnessed to restore normal functioning. His work in regenerative medicine propelled him into national prominence and a collaboration with medical scientists in the Center for Regenerative Medicine at the Oregon Health & Science University in Portland.

“We do a lot of research with the military involving traumatic limb injuries among soldiers and also severe injuries in civilians,” Guldberg said. “We’re trying to understand from a biological standpoint whether we can predict patients who are going to respond well, or not, to treatment.”

Guldberg grew up in southeastern Michigan. His father was a Ford Motor Co. engineer and executive, his mother a nurse. He headed to the University of Michigan with an interest in bioengineering and a dream of playing basketball. Instead he chose Southern Oregon Business Journal

mechanical engineering. His research life began in his sophomore year.

“I went knocking on the doors of different laboratories to see if somebody would take in a poor undergrad and give him some research experience,” Guldberg said. “I ended up landing in the orthopedic bioengineering lab in the surgery department.”

The lab’s director, Steve Goldstein, placed him with a clinician studying dislocated shoulders.

“My assignment was to help figure out how important the rotator cuff muscles and the capsule around it were in shoulders that were being dislocated,” Guldberg said. “In engineering terms, this involved the static and dynamic stabilizers. I had to design a device that would hold a human shoulder, which wasn’t too hard for a mechanical engineer.”

That work led to his first published paper and hooked him on science.

“I met Bob when he was an undergrad and was looking to go to graduate school. I immediately liked his confidence and his passion. Over the next few years as he completed his doctoral studies he demonstrated creativity, technical excellence and great perception. When I asked him to mentor graduate students, he provided me with a glimpse into his developing leadership skills. And as an external advisor to the Petite Institute, I’ve had the opportunity to watch Bob grow into a phenomenally successful investigator, leader and now director. He has that unique ability to see opportunity, capitalize on it and engage others in its success.”

—Steven Goldstein, professor emeritus, University of Michigan, and Guldberg’s first research mentor

Some of his federally supported research will follow him to the UO. He also will bring his management style to the Knight Campus.

“I make quick decisions when necessary,” he said. “I am not afraid to take risks and push ahead, but, given time, I like to listen to others first and build consensus and develop strategies around what would be the greater good. I think that fits well with what the Knight Campus has in mind. I am interested in having staff members who like each other, work well together and are engaged in the cutting-edge research our students and faculty are doing.”

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Marketing Principles in an Evolving, Disruptive Marketplace

The 4Ps of marketing have been around for quite a while, but changing customer expectations, new technology and disruptive businesses demand adapting those principles to reach and persuade todayâ&#x20AC;&#x2122;s consumers The 4 Ps have been the axioms of marketing for decades, but are they still relevant in the digital Southern Oregon Business Journal

age? Sort of.

Product, price, promotion and place provide a framework for marketing plans â&#x20AC;&#x201C; what are you selling, at what price, with what kind of promotion and through what channels. It is hard to get more basic than that.

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However, the explosion of communication channels and the erosion of traditional media channels has made marketing these days anything but basic.

services. Who would have imagined Amazon in the food space or SpaceX in the colonization of Mars business? It will definitely make marketing even more challenging.

Jonathan Bacon, writing for Marketing Week , suggests the 4Ps have become more like guideposts than roadways to marketing success. He quotes one marketer as saying, “Marketing is no longer about what businesses want to tell their customers, it is about businesses listening to their customers and responding in a way that offers a meaningful solution to them.” Customer relationship management doesn’t exactly fit into the 4Ps as “promotion.”

The 4Ps represent the established wisdom of marketing. Success these days doesn’t require rejecting 4P-principles. Instead, the 4Ps can be a compass of what to watch for in the marketplace so you don’t convince yourself that a low price, a clever ad or lots of followers on Facebook will take you to the promised land.

Bacon notes that while “price” continues to play a role in customer decision-making, marketers must demonstrate why a product offers “value.”

Matt Barwell, consumer management officer for a beverage company, tells Bacon he has added two of his own Ps – purpose and penetration. Brands need purpose to exhibit consistency in product quality and their brand promise, which is emerging as a critical differentiator. Penetration is essential to the success of any marketing strategy, which translates into putting marketing messages in channels where intended customers are watching.

Ignoring the 4Ps can be risky, Bacon says, as many brands have discovered by chasing, but not catching fast-moving digital crowds. It’s like driving in a strange land without a roadmap.

Marketing principles still apply.

They simply have become a whole lot more complicated to apply.

CFM Strategic Communications 1001 Sw Fifth Avenue Suite 1100 Portland, Oregon 97204 Fax: 503.294.9152 | Phone: 503.294.9120

Copyright 2015, CFM Strategic Communications

The solution lies in adapting the 4Ps to the contours of a specific product’s shape or a brand personality. Offering free samples in a grocery store is different, but not that much different than providing samples to an influential blogger who will write a review. Both are promotions, and both seek to build a relationship.

New technology, including artificial intelligence and virtual reality, will profoundly alter the marketing landscape of the future. And that doesn’t take into account disruptive products and

Southern Oregon Business Journal

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There is a unique investment opportunity underway in Winston, Oregon Our Winston Neighborhood, Inc. (OWN), a local company, is conducting a direct public offering of stock (DPO) in an effort to take ownership of and transform the core of the community. The end goal is to create a beautiful, profitable, pedestrianfriendly, mall called The Elephant’s Walk.

A DPO is similar to an initial public offering (IPO) in that securities, such as stock or debt are sold to investors. However, unlike an IPO, a DPO allows a company to raise capital by marketing directly to prospective investors without an intermediary underwriting the stock, thereby cutting out the middle man. Some DPOs do not require the issuers to register with the SEC because they qualify for certain federal securities exemptions based on the size of the DPO and whether it is limited to a single state audience. In today’s terms, think of it as crowdfunding – but with ownership.

Often times, there is significant overlap between a company’s DPO investors and its customers.

Although they have not been used much historically – one of the more successful DPOs was for Ben & Jerry’s ice cream way back in 1984 – DPOs are picking up steam, fueled by smaller investors ready to support the growth of smaller companies that Wall Street overlooks.

With the success of its DPO, OWN will become the majority owner of Winston Core Project, LLC, which will replace several historically blighted properties adjacent to Winston’s one stoplight with a unique convening, shopping, and dining experience Southern Oregon Business Journal

catering to tourists and residents. Situated less than a mile from the world-famous Wildlife Safari, which drew over 200,000 people in 2017, and at a crucial junction to the Oregon coast, Winston is already at a prime place to capture the tourists and travelers nearby. The Elephant’s Walk will serve as the beacon to draw them in.

“We decided on this unique ownership model in order to raise funds directly with residents, giving a sense of pride and ownership and ensuring that any wealth generated remains within the local community.”

Della Harp, President of OWN

In a nod to the community spirit of the investment, OWN’s DPO provides any Oregon resident the opportunity to purchase one share of voting stock and an unlimited number of non-voting shares for $100 per share. Therefore, while economic returns will be allocated among owners based upon relative investment amounts, each individual owner will have one share of voting stock for purposes of electing a board of directors or directing significant corporate activity. The goal in this design is to ensure that each shareholder has the opportunity to take part in determining the direction of the Corporation, and in turn, the direction of any activity in which OWN participates.

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WINSTON, OREGON The Community is the Entrepreneur!

Southern Oregon Business Journal

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According to Della Harp, President of OWN, “We decided on this unique ownership model in order to raise funds directly with residents, giving a sense of pride and ownership and ensuring that any wealth generated remains within the local community.”

OWN CFO, Jennifer Mitchell, hopes to see this community ownership model become a tool for other rural communities looking to enact change in

their own towns, both in Oregon and throughout the country. “This could be part of a community’s path to self-sufficiency, and I think rural Oregonians are the kind of folks who can make that happen. We’ve done it before. Let’s do it now.”

Details of the offering are outlined in the summary below:

Offering Summary Issuer: Our Winston Neighborhood, Inc., an Oregon corporation (OWN Inc.) Maximum Approved Issuance: Up to 10,000 shares of common stock at a price of $100 per unit ($1,000,000 in total shares available) Minimum Investment: $100 (1 share) Closing Date: August 18, 2018 Use of Proceeds: To purchase a majority interest in Winston Core Project, LLC, which will use the invested proceeds to renovate and combine multiple properties currently owned at the center of downtown Winston into a commercial business park called The Elephant’s Walk – Experience Winston.

Class of Units: OWN Inc. has only one class of stock. There are no special investor classes, no warrants, and no options. Investors in this round will own a proportional share of all existing and future OWN Inc. projects. Each shareholder is entitled to one vote, regardless of number of shares owned.

Impound: All funds will be held in escrow at Banner Bank in Winston, Oregon until at least $350,000 has been deposited and the Oregon Department of Consumer and Business Services has given written permission to release the funds. No interest will be paid on funds in escrow. If the company fails to raise the minimum amount of $350,000 by August 18, 2018, all investments deposited in the impound account will be refunded.

Investor Limitations: All investors must reside in the State of Oregon.

Yield: There can be no guarantee of profitability of OWN Inc. or its subsidiaries. The Board of Directors will have discretion over how much of earnings/profits of OWN Inc. to either distribute or retain.

Instructions: Prior to investing, all investors should review the complete Offering Circular. To invest, visit www.OWNwinston.com to complete a Subscription Agreement or mail a completed Subscription Agreement with check to:

OWN Inc. PO Box 1058 Winston, OR 97496 Southern Oregon Business Journal

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Last year, the Oregon International Port of Coos Bay partnered with the Port of Alsea to complete dredging in their marina, which is used extensively by recreational users all rear round. The Port of Alsea was a priority due to extensive shoaling and years of no maintenance dredging. The Port feared that their marina would become completely unviable.

Currently, dredging projects are selected each year based on severity of need and availability of funding. The Oregon International Port of Coos Bay will be working with the State of Oregon to establish a committee of ocean and river ports to develop a selection process for dredging projects, since there are significant needs at ports throughout the state.

For additional media information, please contact: Margaret Barber, External Affairs Manager, Port of Coos Bay Phone 541.267.3713 / E-mail: mbarber@portofcoosbay.com / www.portofcoosbay.com 125 West Central Avenue, Suite 300 | P.O. Box 1215 | Coos Bay, Oregon 97420-0311 Phone: 541-267-7678 | Fax: 541-269-1475 | email: portcoos@portofcoosbay.com | web: www.portofcoosbay.com

The Laura

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Is recovered paper a disruptive battleground?

By: John Yolton, Principal, FOG Group

There has been much press coverage of Chinaâ&#x20AC;&#x2122;s recently announced restrictions for recovered paper imports. A disruptive announcement at minimum.

In essence the restrictions are imposed in order to improve the quality of the product entering China.

countries and their own domestic collection and sorting capabilities This process is hindering some Chinese paper manufacturers ability to produce product, e.g., no raw material, no finished material.

Until Chinaâ&#x20AC;&#x2122;s domestic capability to collect and sort paper waste generates more, better quality recovered paper from within China the paper manufacturers within China are dependent upon other

Exporters The primary suppliers of recovered paper are shown in the chart below:

This chart represents the top global exporters of recovered paper (RCP) over the last six years based upon the cumulative total for those six years.

Clearly the USA is the 800-pound gorilla in this market.

Southern Oregon Business Journal

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Personal experience with the separation of recyclable materials, especially paper here in the USA, will confirm the changes, perhaps labelled as progress, tot eh collection and sorting of recovered papers.

Obviously, this ‘sorted’ product must undergo additional, more precise sorting in order to be ‘clean’ for producing paper and paperboard. This generally takes place somewhere in the supply stream to the paper mills.

Locally, the contracted service for household recycling has changed rules of the process.

Importers A modern, well-equipped paper mill using RCP generally has additional manual sorting if receiving mixed waste in order to separate the waste streams, in some cases using non-reusable waste as a fuel for energy generation.

Before the changes paper was separated by the household by grade, e.g., communications, packaging, other. Today these are mixed. In fact, the previously separated glass, metal and plastic are now combined and with the mixed paper all are collected in one large container.

Separation, what there is of it, is performed manually by human sorters at the main collection station.

Here the gorilla in the room is China, which has obviously made their demands known, disrupting the RCP process on a global basis. The volumes of paper for recovery is astonishing and creates a business all on its own.

So, what are the issues?

The recovered paper is then introduced to the fiber cleaning process which can incorporate very complex technology.

The top global recovered paper importers are shown below:

which of course means loss of revenue and disruption of end use customer supply.

For others the supply chain disruption means a stockpiling of mixed waste with nowhere to go except landfills.

For China it is pollution caused by other’s rubbish.

And for others an improvement in the collecting, sorting and distribution processes.

For Chinese papermakers, due to the self-imposed (government) restrictions, it is production losses

One can imagine that the end result will be increased costs along the entire supply chain.

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34

Move Over Millennials: Here Comes Generation Z

By Refresh Leadership in January, 2018 Emerging Leaders, Teamwork and Communication

the digital age. They’ve always known a world with smartphones, Facebook, and Netflix. Generation Z is not excited by the latest technological advances— in their minds, innovation is expected.

They also grew up in the midst of a recession and, as a result, tend to be more frugal and financially savvy. They’re less brand conscious, and tend to trust individuals, not corporations.

For the past 15 years or so, Millennials have been the generation on the rise and have received their fair share of analysis — and punchlines — as they staked their claims to increasingly influential roles in the workplace. Fortunately, and in spite of some fears to the contrary, companies are no worse for wear and, in many ways, becoming stronger than ever before as Millennials settle into positions of leadership.

However, no sooner has one generation found its footing, a new one is already moving in and the skills and characteristics they bring to the workplace are just beginning to take shape.

Here Comes Generation Z Referred to as Generation Z or the iGeneration, this newest group was born after 1995. And, at nearly 2 billion strong globally, the oldest members of Generation Z are just now beginning to enter the workforce.

They’re the most ethnically diverse generation in history and therefore much more inclusive and tolerant of differences than ever. And, they harbor an independent and competitive spirit. Their Generation X parents taught them there are definite winners and losers in life, and not everyone gets a trophy.

This up-and-coming group is on the leading edge of Southern Oregon Business Journal

Generation Z is open to non-traditional forms of learning. They know how to self-educate and are skilled at finding the information they need and want. Generation Z uses online reviews to research everything, even employers. And although Generation Z’s attention span is shorter than previous generations, they’ve adapted to quickly and efficiently sort through and assess tremendous amounts of information.

They’re natural multi-taskers, easily shifting between work and play, all while multiple distractions go on around them. And, like Millennials, Gen Z are confident and eager to learn new skills. They seek work environments that foster mentoring and prefer a teaching-style of leadership. They envision working for companies that “stand for something” and offer a balance of flexible schedules and work environments.

Despite their inclination toward digital communication, they prefer in-person interactions with managers and coworkers and value frequent feedback.

When dealing with Generation Z, don’t talk down to them or treat them like generational stereotypes.

Instead, be direct, visual, and succinct. Appreciate their fresh perspectives, listen to their ideas, and value their opinions. In the coming years, as millions more of them transition into the labor force, we’ll continue to learn more about what motivates Generation Z and their work preferences.

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Faces of Change There are as many as five unique generations working side by side in the workforce today, each with greatly varying beliefs, influences, and traits.

So, itâ&#x20AC;&#x2122;s bound to cause some conflict.

ExpressEmployment Professionals created Faces of Change, a training program intended to shed light on the different generations and a few best practices to manage them. With key insight into the characteristics of Traditionalists, Baby Boomers, Gen Xers, Millennials, and Generation Z, this program will help you understand generational shifts and expose areas in your business that are prone to generational conflict.

For more information about the Faces of Change program, visit ExpressPros.com today! www.refreshleadership.com/index.php/2018/01/ move-millennials-generation/

Southern Oregon Business Journal

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Destiny Drives the Entrepreneur High school has a way of enticing hyper-active young people in directions their parents often wouldn’t approve. Then, it all works out.

Chasing dreams isn’t a linear event. We wander around hoping fate will make our decisions for us and that it will be a perfect fit for our personalities and ambitions. Trying other things is on many work

histories until the impulse to “do what you’ve always wanted to do” strikes and caution hits the wind.

John Hooper was told he was most likely to own a stereo store when he got out of school. He does, and more. He calls himself a “Hobbyist” rather than a business owner. Some things we do simply because we have to.

Nurturing a single store to make it as successful as possible is the way to go. http://theoldmotor.com/wp-content/uploads/2015/05/inc2.jpg

Larson’s Superstore hired John in the 90’s. That’s where he learned about retail and car stereo installation. Then along came good friend Dan Endicott who shared the dream of going out on their own. Maxing out credit cards and renting a place on Chestnut St. turned them into business owners.

Three years and cash flow gave them enough Southern Oregon Business Journal

confidence to open a second store in the Roseburg Mall.

Like every business person before them, they soon discovered that two stores were not one store times two. Two stores were a lot more challenging than they were supposed to be. After a year or so they moved again.

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It was around 2003 or 2004 they bought Good Vibrations. And closed the other two stores. Lesson

John and Dan were in business before there were Smart Phones, the internet, or Costco. The competition of Costco turned out to be a good thing as it forced them to become more sophisticated in the way they ran the business, learning to track trends and inventory. Joining an Owner’s Group provided a network of people in the same industry with skills and experience to share.

Electronics and the internet forced a change because it caused the turn of inventory to happen much more rapidly. And now Amazon’s “Next Day Delivery” forces inventory enough to provide for the wishes of walk-in customers. Add in the installation service available and Good Vibrations is able to be the local business that more than holds its own.

Service after the sale is key.

learned, nurturing a single store to make it as successful as possible is the way to go.

John bought out Dan’s interest in the business in 2011. Service, quality and a change in the employee benefits package helped to make it through the recession. Providing health care attracts employees with a future in mind. They also like a newly created bonus structure. Everything is a win/ win that way.

Christmas holidays are a big part of the sales cycle and the 20 year long July Tent Sale keeps the summer months busy.

What about those Big Box Competitors and On-Line ordering through Amazon? John knows business and realizes competitors are really advertising buddies. Customers have to be earned and that’s what Good Vibrations does best.

Good Vibrations is an electronics store and custom installation provider in Roseburg, Oregon for design, integration and installation of home theater systems, distributed Audio/Video systems, car stereos, home networking, and Pre-Wire for residential environments.

Southern Oregon Business Journal

957 NE Stephens Street Roseburg, OR 97470 Phone: 541-673-4764 www.goodvibesav.com/

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Scott Stovall and Jessie Fountain founded Evergreen Land Title Company in 1981. With a background in the title business, Scott wanted to start a full-service firm and one that could utilize an idea he was developing for a computerized title records program. Jessie owned her own escrow company so the two combined their talents and experience to form Evergreen.

SCOTT and BEGINNING A computer, a printer, some computer programming, and ingenuity; that’s how Evergreen inserted itself into Lane County’s title industry. In 1981, Scott Stovall and Bob Fitzhugh created a computer program that forever changed the title business.

Previously, all deeds, records and title chains were maintained and assembled manually. With this new program, created on a 512 kilobyte computer with 90 megabytes of additional storage, Stovall and Fitzhugh could print out a complete chain of title for a property without having to manually sort through old documents. It may not sound like much, but not having to manually assemble a chain of title saved hours of labor.

Spirit of an Entrepreneur – Dartboards and Sports Cars The recession of 1981-82 had taken its toll on the housing market, and as a result, foreclosures became the main source of title business. At this time, unfortunately, one of the main sources for foreclosure business was the Department of Veteran Affairs. The USVA had made it clear that they were going to use the title company that the home was purchased through to do the foreclosures as well, because it was less of a hassle. Scott Stovall saw this as a challenge, and decided to get creative to try to earn some business. After being turned down in his first attempt to gain business, Stovall mailed a dartboard to the head of the USVA. On the dartboard, Scott wrote Evergreen in every space except the bullseye. He was eager for a chance, and after his dartboard stunt, he got his opportunity.

Evergreen got a title order from the USVA, and Southern Oregon Business Journal

Scott was now able to show off his new program to the big dogs. He printed out the full chain of title, his staff assembled all the necessary documents and contacts for necessary parties, and Stovall arranged for a personal meeting with the head of the local USVA. In the meeting, Stovall revealed that he was the source of the dartboard, and wowed the executives with his new programs abilities. This display of creativity and determination, coupled with his new program, earned Evergreen more than 30 new orders from the USVA the next week.

In 1982, the second year of operation, Scott Stovall checked the company accounts on a Thursday, knowing payroll was due on the coming Tuesday, and Evergreen didn’t have enough money.

Realizing that he was not going to have enough funds, Scott put his 1975 Datsun 240Z up for sale in the local newspaper.

He sold the car on Saturday, cashed the check on Monday, and made payroll on Tuesday.

A couple of months later, news of the local hospital expansion spread through the title industry. Who was going to get the deal? Every local company was battling over the title order for the multi-million dollar project. Instead of utilizing the common business and marketing practices like his competitors, Stovall used a different approach. The hospital was going to have a big event called the “Mash Bash”, so Scott joined the events board and worked hard to sell the most tickets to the event.

This hard work and creativity pushed his name in front the executives, and ultimately secured the 39

largest title order in Lane County’s history up to that point for Evergreen.

Evergreen is a family owned and operated business with deep roots in Lane County. That’s why they feel it’s important to give back to the community that has supported them over the years. Evergreen supports many area events and charities like the Springfield Christmas Parade, The Festival of Trees, The Filbert Festival, and more.

It takes great employees and time to create and maintain a successful business, for over a quarter century Evergreen Land Title Company has done just that.

Evergreen was established in 1981 with humble roots beginning in Springfield, Oregon. Several years later they opened the Eugene branch office to better serve Lane County’s real estate industry.

Evergreen has been recognized by the Springfield News, the Eugene Register Guard and Oregon Business Magazine for its desire to provide a greater level of service and comfort during a real estate transaction.

COMMUNITY Scott Stovall ran Evergreen with this quote as a foundation to build from: “You don’t take from the community without giving something back.” It is this spirit that has led to Evergreen sponsoring many benefits and community events. If there is a school that is selling cookie dough for a field trip, or a sports team that is trying to buy new equipment, Evergreen is almost always a financial supporter. Until recently, Evergreen had been the title sponsor for two of the celebrations unique to the town of Springfield: the “Oldest and Coldest” Christmas Parade and the Filbert Festival. Both events were staples of the community and provided rich history that Evergreen is proud to have been a part of. Also, the local Festival of Trees which benefits community health and hospice care, is a community event that Evergreen has been involved with many times.

DANA A local professional with deep roots in the Willamette Valley, Dana Hinshaw has been an integral part of every team she has been with. Dana started in the title & escrow business in the mid 1990’s when she was hired as a receptionist at a local company. Her natural ability was undeniable, and before her first Southern Oregon Business Journal

day on the job was over, she was moved across the building to be an assistant to a top producing escrow officer. After 3 years, Dana felt it was time to become an escrow officer herself, so she changed companies and dedicated the next 10 years to honing her craft. In 2007, Dana was faced with a decision when her company was closing; return to the company that got her into the business, or join a locally-owned, community and family-minded company. Since she was a new mother, Dana chose the family-oriented company Evergreen Land Title Co, and that has led her to where she is today.

KEN Ken Boyst is a hard-worker that earned his way to the top. The day of his high school graduation, Ken left for Marine Corps boot camp. After 4 years of armed forces service, Ken returned home to go to the University of Oregon. In 1992, right after college, Ken started as a title chainer for a local competitor to Evergreen. In 1996, Ken decided he wanted to shift to a more family oriented and community-minded company, so he made the shift to Evergreen.

Wanting more client interaction, Ken made the shift into Escrow in 2001 by becoming an Escrow Officer.

5 years later, Boyst became the General Manager for Evergreen. Since then, Ken has helped Evergreen navigate the market crash of 2008, 2 title manager changes, and is now experiences success as the co-owner of the business.

Evergreen Title has become a great success by ingenuity, intelligence and hard work. The organization has recently changed ownership to long-time employees with a commitment to excellence which has become the brand of the company. It is poised to remain that way into the next generation.

Eugene Branch Office: 260 Country Club Road, Suite 120 • Eugene, Oregon 97401 Eugene Phone: 541-687-9794 Eugene Fax: 541-687-0924 Springfield Main Office: 1570 Mohawk Boulevard • Springfield, OR 97477 Springfield Phone: 541-741-1981 Springfield Fax: 541-741-0569 http://evergreenlandtitle.com

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What drives ride-hailing: Parking, Drinking, Flying, Peaking, Pricing

By Joe Cortright 2.19.2018

Ride-hailing is growing: We distill a new report into 5 key factors that explain its growth A good reporter is always supposed to ask five questions: “who, what, when, where and why?”

A new report on ride-hailing provides a range of keen insights about the demand for these services and has important implications for predicting the future of autonomous vehicles.

There’s a new report from Shared Use Mobility Center, published by the Transportation Research Board, with a ponderous title: “Broadening Understanding of the Interplay Between Public Transit, Shared Mobility, and Personal Automobiles. The report is over a hundred pages long, and filled with interesting and often arcane detail about who’s using services like Lyft and Uber, where and when they use them and how this is affecting demand for street space and transit. If you’re a real transportation geek, you’ll want to read the whole thing. But if you aren’t (or in the meantime, until you’ve had a chance to read it) we can boil the whole thing down to five words: drinking, parking, flying, peaking and pricing.

The heart of the work is an analysis of tripmaking data supplied by ride hailing companies, similar data collected in San Francisco, and surveys of more than 10,000 customers of ride -haling services in five cities: Chicago, Los Angeles, Nashville, Seattle and Washington, DC. The study also explored the question of whether use of ride-hailing services had any impact on transit ridership in these cities.

The slightly longer narrative take on the report is this: Ride-hail demand is driven by drinking (people Southern Oregon Business Journal

who want to avoid having drive their own vehicle on Friday and Saturday nights), by the cost of parking (ride-hailing is a more economical alternative to bringing your own car places where parking is expensive). People traveling by air seem to value their time more highly, and may have no access to a personal private vehicle at one end of their flight.

Ride-hailing is highly peaked in those times (especially Friday and Saturday nights) and places (downtowns and airports) in which there is demand.

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Finally, ride hail trips tend to be short (just 2-4 miles), because customers pay for each additional mile and minute.

The report also tells us a lot about where these services aren’t valued. There’s little demand for ride-hailing when parking is cheap or free, when drivers expect to be sober, and for longer trips, and to destinations that don’t have a high density of people and destinations (or an airport).

As a result of these factors (especially pricing, parking and flying), most ride hailed trips tend to take place in a small subset of a region’s neighborhoods (especially in and around downtown, where there’s a density of customers and destinations, and where parking tends to be pricey).

People use ride-hailing services “on an occasional basis” and for trips where speed and reliability are important. Few people use it for commuting on a regular basis.

What this suggests is that the markets for ride-hailed vehicles today–and for their successors, fleets of autonomous vehicles tomorrow–are likely to be shaped by many of these same factors. Demand will be highest where people, and trip origins and destinations are densest, where parking is expensive, where and among populations that have a high value of travel time savings (and the ability to pay).

Ride-hailing and autonomous vehicles are going to affect some people, some trips, and some places much more than others.

The content of this report is an excellent addition to our knowledge about ride-hailing and its place in the urban transportation system. It’s a shame that much of the most salient content and its implications are buried in the report. (Just a thought: starting the title of your report with the words “broadening understanding of the interplay” is not an attention grabber). More tangibly, while the report’s data implicate parking costs as a key factor in ride-hailing demand, that observation isn’t made in the report and the word parking appears on just 6 of the report’s more than 100 pages. We’ve tried to punch up the findings a bit to that the meat of this report gets the attention we think it deserves.

Feigon, S. and C. Murphy. 2018. Broadening Understanding

of the Interplay Between Public Transit, Shared Mobility, and Personal Automobiles. Pre-publication draft of TCRP Research Report 195. Transportation Research Board, Washington, D.C.

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Stick To The Forecast FEBRUARY 12, 2018 BY DUY@UOREGON.EDU

My position on Wall Street’s gyrations remains unchanged. Until late last year, the risk of higher interest rates was underappreciated. It wasn’t until the fall that the realization started to sink in that the Fed was nowhere near calling it quits. The economy was normalizing faster than anticipated.

The wounds of the financial crisis were healing, leaving the stage set for the best economy since the late 1990s.

Stock prices, however, did not reflect this new reality. Even a partial normalization of interest rates would require a repricing of equities. The gains in

Southern Oregon Business Journal

“So far, I’d say this is small potatoes…”

New York Federal Reserve President William Dudley, February 8, 2018

stock prices in recent months were excessive.

A correction was not unexpected. The spark for that correction appears to have been a solid employment report (although it is reasonable to say that we never really know why the psychology shifts).

I think that the shock to Wall Street is more likely than not to be contained to Wall Street. This looks more to me like 1987 than 2007. Indeed, I think this shock has a silver lining in that it might extend the length of this expansion.

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Central bankers appear to feel similarly – the hit to stocks to date has yet to meaningfully impact their forecast. This is the message they want to push to sustain expectations that another rate hike is coming in March. See San Francisco Federal Reserve President John Williams, who I think lays this out nicely in this speech.

likely take comfort in some steam coming off of financial markets. Better a small hit than a 1987-like crash. Other officials saw high equity prices as reflective of very low neutral rates. They will see lower equity prices as a natural consequence of rising neutral rates – something that both looks to be happen and is consistent with their forecast.

Note that the Fed did not raise their rate hike expectations in light of the positive shock to equities over the past couple of months. An offsetting negative shock should then not cause a change in forecast either. We also know from the Fed minutes that some officials were concerned about the possibility of a drop of equity prices and the potential negative implications for the economy. These individuals will

Indeed, I would add higher long-term rates give greater credence to the Fed’s rate forecast for this year and next. Chasing the long end of the curve is exactly what is needed if policy rates are going to return to something much more “normal.” Watch the very long bond – the anchor of the 30-year yield is slipping.

All of that said, I am not sure I would, like Dudley in the quote above, dismiss the market move as “small potatoes.” A ten percent swing in prices is going to hurt someone. Someone is on the bad side of a leveraged trade. How big and how bad, I don’t know. What I do know is that small events can balloon into larger problems. I don’t think that is the case in this instance, but neither did then-Federal Reserve Chairman Ben Bernanke in 2007. The lesson from then should have been that policy makers are wise to approach things with a bit more humility, at least in public.

The further the financial crisis fades into the past, the more lessons will be forgotten.

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I suspect the challenge for the Fed will be to keep market participants focused on their medium-term forecast. If, as many believe, wage growth and inflation make an appearance this year, the Fed will have the opposite problem from 2017. Then they struggled to keep the focus on gradual rate hikes despite disappointing data. In retrospect, I think the dovish policymakers did us few favors last year, 44

tamping down rate hike expectations that then were quickly reversed in recent weeks.

In 2018, we should be cautious of the opposite, of rising rate hike expectations (to four and beyond). To be sure, this is the risk to the forecast. But policymakers will likely send a message that they will not overreact to higher inflation just as they did not overreact to lower inflation in 2017. I donâ&#x20AC;&#x2122;t think anyone could be faulted for believing that two percent is a ceiling, not a target.

Bottom Line: Gyrations on Wall Street look to be best described as a negative shock that simply reverses a recent positive shock. If the latter did not have time to feed through to the broader economy, then the former will have limited negative impact. Unless that situation changes, keep an eye on the economic forecast for signals on the likely path of monetary policy. In particular, watch for policy makers to emphasize the symmetric nature of their policy target. This is potentially the first time in a long time they can prove the target is indeed symmetric. They can maintain focus on the forecast and calm market jitters without glibly dismissing the possibility that last week proves to be the tip of an iceberg.

Professor Duy received his Ph.D. in Economics in 1998 from the University of Oregon. Following graduate school, Tim worked in Washington, D.C. for the United States Department of Treasury as an economist in the International Affairs division and later with the G7 Group. In the latter position, he was responsible for monitoring the activities of the Federal Reserve and currency markets. He is the Senior Director of the Oregon Economic Forum and the author of the University of Oregon Statewide Economic Indicators, Regional Economic Indicators, and the Central Oregon Business Index.

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Oregon Renewable Energy Center welcomes new Director to spearhead expanded operations after state funding February 13, 2018

One-time funding provided by the Oregon legislature in 2017 has enabled OREC to expand into the applied research center it was created to be .

Oregon Institute of Technology, “Oregon Tech,” announced the appointment of Dr. Mason Terry to lead the Oregon Renewable Energy Center (OREC) as its new Director. Although Oregon Tech has operated OREC mainly through grants since 2001, one-time funding provided by the Oregon legislature in 2017 has enabled OREC to expand into the applied research center it was created to be.

Dr. Nagi Naganathan, president of Oregon Tech said, “We are grateful to our Legislature and the Governor for investing in the future of Oregon’s workforce. Oregon’s economy, particularly its rural areas, calls for the education and training of student entrepreneurs who learn in real-world laboratories and classrooms, creating an innovation culture that has a direct and positive return for all Oregonians.”

A graduate of Oregon Tech, Dr. Terry’s experience in leadership and operations roles make him a Southern Oregon Business Journal

strong leader for OREC. As a previous lead of global researchers for DuPont (formerly Innovalight) and experience working for the company for 10 years, Dr. Terry was part of one of the most successful science and engineering companies in the world. He gained vast experience working with innovative technology and software, and is Six Sigma Green Belt certified, giving him strong operations management assets as well.

In his new role as director, Dr. Terry will support the key goals of OREC: energy generation, talent development, and applied research and technical assistance for companies and communities. At this time he is establishing an advisory board consisting of faculty, distinguished alumni and industry leaders who will play an important role in OREC’s success and external branding. OREC also announced the Multidisciplinary Energy Partnership Request for Proposals for faculty and collaborators for the 46

development of research projects funded by the legislature for 2017-18. The objective of these projects is to foster inter/transdisciplinary collaboration of faculty and student on renewable energy focused projects.

“I’m very excited to expand the reach of OREC through funding and grants,” said Dr. Terry. “This allows OREC to continue to support engineering education in the form of renewable energy labs, student projects and faculty-led applied research projects. I also plan to engage with Oregon Tech geothermal experts such as Dr. John Lund, Dr. James Zipay, and Dr. Eklas Hossain to expand OREC’s involvement in ongoing campus projects.

There are also many opportunities to collaborate with the Oregon Manufacturing Innovation Center and I look forward to the partnerships that can be built.”

OREC was established in 2001 to integrate renewable energy technologies into energy systems for practical use by businesses and consumers.

OREC works with faculty and students to conduct applied research, provide education and technical assistance, and work with industry and electric utilities in Oregon and the region to make renewable energy the energy of choice for the future of the nation. OREC also supports incorporating sustainability concepts into regular coursework across all disciplines, while programs such as Oregon Tech’s renewable energy, manufacturing and civil engineering, environmental sciences, and business management address sustainable practices directly.

Through additional legislative funding for the Center for Excellence in Engineering and Technology (CEET), Oregon Tech is also receiving updates to the existing Cornett Hall, which traditionally houses engineering labs and OREC. With the expansion, engineering departments of civil, electrical, manufacturing, mechanical, computer systems and renewable energy; and departments of geomatics, management, and information technology will also be housed within CEET, which increases the capacity for multidisciplinary projects.

what can be done with seed investment from the state, and creates opportunity to show off the creative and industry-focused work of our faculty and students. We place emphasis on applied, multidisciplinary education and this allows students hands-on experience in their disciplines and preparation for careers in the industry through not only the projects they do, but the networking with the industry partners that will really accelerate student success when they graduate.”

Kuleck added, “We are already working on attracting a variety of industries to this area which are going to play an important role in the innovative ecosystem we’re building.

“A lot of states, including Oregon, already have or are implementing a mandate for businesses to supply a certain percentage of their electricity from renewable sources,” said Dr. Terry. “States are taking the lead on a lot of the renewable energy demand and expanding the renewable aspect of how businesses operate. The more we collaborate with businesses to understand their needs at this point, the better prepared we are, and Oregon Tech students are, to respond to the demand that is being built. Maintaining our presence as a leader in renewable energy education requires keeping on top of trends and technology.”

The State of Oregon's Renewable Portfolio Standard requirement is to achieve 50 percent renewables to meet the state’s electricity by 2040.

Dr. Terry’s Ph.D. is in Photovoltaic and Renewable Energy Engineering from the University of New South Wales, Australia. He also has a M.S. in Electrical Engineering from University of Washington and is a graduate of Oregon Tech with a B.S. in Electronics Engineering Technology.

Dr. Gary Kuleck, Oregon Tech provost said, “This is an excellent opportunity for Oregon Tech to show Southern Oregon Business Journal

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Voltage, Oregon - Harney County

By Gary Halvorson, Oregon State Archives, Attribution, https://commons.wikimedia.org/w/index.php?curid=19099664

Walter C. Botsfordâ&#x20AC;&#x2122;s Dream Voltage is an unincorporated community in Harney County, Oregon, United States. It is about 34 miles (55 km) south of Burns, on the south shore of Malheur Lake near the Donner und Blitzen River. The Harney Basin is an endorheic basin in southeastern Oregon at the northwestern corner of the Great Basin.

One of the least populated areas of the contiguous United States, it is located largely in northern Harney County, bounded on the north and east by the Columbia Plateau.

Voltage post office was established in 1908 by Walter C. Botsford, the first postmaster. who was interested in electricity and thought that the Donner und Blitzen River could generate enough "voltage" to serve the entire Harney Valley. He had confused voltage with power; a hydropower project was never attempted. The post office closed in 1933. At one time, Voltage had a store and school district; today, however, there is little evidence of a once-thriving community.

Voltage is about 3 miles (5 km) east of the former community of Sodhouse, near the present-day headquarters of the Malheur National Wildlife Refuge. It was originally the site of a sod house built by a group of local settlers around 1872. The site lent its name to the Sod House Camp of the Civilian Conservation Corps (CCC) and the Sod House Ranch. As of 1978, nothing remained of the sod house but a low rock wall; in 1937 the CCC erected a historic marker at the site. A post office named "Springer" was established near the site of the sod house at Sod House Spring; it was later moved to Narrows and renamed. The Voltage and Narrows school districts were consolidated with the Sod House district in the early 1940s. https://en.wikipedia.org/wiki/Voltage,_Oregon Southern Oregon Business Journal

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